Retirees will see a significant increase in their insurance rates, when they receive their option period packets this month. Unfortunately, the rising costs of health care have resulted in premium hikes for the state’s largest insurer, HealthChoice.
“This an example of why we must have annual cost-of-living adjustments," said OPEA Policy and Research Director. "Retirees are struggling to make ends meet with increasing the increasing cost of food and medicine. Annual two percent COLAs do not affect the unfunded liability of OPERS.”
HealthChoice, the state-run PPO program, has utilized reserves in past years to help keep the premiums down for state agencies and school districts. Unfortunately, the plan had high claims experience this year and does not have reserves to help pay the premiums for 2009. Therefore, the cost for HealthChoice High option, which is the plan used by most pre-Medicare retirees, will increase by an average of 13 percent. The Medicare rates will also increase.
OPERS retirees average cost-of-living adjustment (COLA) this year was $58 per month. The increase in the cost of the HealthChoice Medicare Supplement premium will consume half of the raise.
Fortunately there is good news for retirees who receive social security. The federal government announced this week that social security benefits will increase by 5.8 percent, beginning in January. The raise is the largest for the agency since 1982.
In the 2009 legislative session, OPEA will be working to break the hold that lawmakers have on retiree benefits by passing a COLA in a non-election year. Watch the OPEA Advocate and the website for updates about opportunities to be involved in this important initiative for retirees.
To view a comparison of 2008 and 2009 HealthChoice rates for retirees, click here. For all retiree insurance rates go to the OSEEGIB website at http://www.sib.state.ok.us/OptionPeriod2009.asp
Posted on
Friday, October 17, 2008
by Trish Frazier